Will These 3 Agentic AI Stock Beat Micron?

In Ian King's latest presentation, he says the $15 trillion AI agent economy is about to take off. [music] And he says three stocks are positioned to collect a piece of that money every time AI agents spend, verify themselves, or check out online. He even says getting in now could be like when he recommended buying Micron back in 2024, Palantir at eight, and Tesla in 2019. However, he won't reveal the stock unless you pay him hundreds of dollars, but I have good news. I sat down and watched his hour-long presentation, was able to figure out each stock based on the clues in the presentation. In this video, I'm going to reveal each one completely free. Okay, now let's just jump into revealing the stocks because there's multiple stocks to uncover here. All stocks being recommended by King are toll booth stocks in the AI agent sector. So, each of these three stocks gets paid when AI agents work. Here's the clues for the first stock. The first stock sits at the money layer of Ian King's AI agent economy. His first clue is that this company issues its own digital dollar backed one-for-one by real cash and US Treasuries. And this isn't some tiny experimental currency. King says roughly 33 trillion moved through it last year, or about 90 billion every single day. But here's the clue that really narrows it down. The company has also built technology allowing AI agents to send each other payments as small as one millionth of a dollar. That matters because AI agents could eventually make enormous numbers of tiny transactions automatically, paying for computing power, data, software, or services without a human ever touching the payment. King also points to the new federal stablecoin rules, arguing that requirement for dollar-for-dollar backing plays directly into this company's hands because it was already operating this way. Put all the clues together, the dollar-backed digital currency, the massive transaction volume, and the push into AI agent payments, and it's clear the stock being pitched is Circle, ticker CRCL. Circle is a financial technology company best known for creating USDC, one of the world's largest dollar-backed stablecoins. The basic idea is simple. One USDC is designed to equal one US dollar. Circle holds cash and short-term interest US Treasuries behind those tokens, allowing dollars to move across blockchain networks almost instantly. That makes USDC useful for crypto trading, international payments, and potentially the AI agent economy Ian King is talking about. But there's an important distinction here. Circle doesn't simply collect a toll every time USDC changes hands. Its biggest business has historically been earning interest on the reserves backing USDC. So as more USDC enters circulation, Circle holds more reserve assets and potentially earns more interest income. That's a pretty straightforward thesis. If stablecoins become a much larger part of global payments and AI agents accelerate that adoption, Circle could be one of the biggest beneficiaries. The question is whether or not that growth justifies the price investors are paying for the stock today. Obviously, Ian is using a lot of marketing in this presentation calling this a $15 trillion opportunity. Obviously, all that money is not projected to flow into Circle. So I think once you strip away the marketing, I still think there's a legitimate investment case here. USDC already has more than 74 billion in circulation, and Circle is expanding beyond simply issuing a stablecoin. It recently launched its own Arc blockchain specifically for financial transaction, and what it calls the agentic economic era. And the stock has come down quite a bit. At around $87, Circle is roughly 40% below its 52-week high and valued at about $22 billion. The company generated about $2.9 billion in revenue over the last 12 months. So, the valuation is still expecting plenty of growth, but it's much easier to justify that when the stock was trading near its highs. What gives me pause here is the business model itself. Circle still makes a huge amount of money from the interest earned on the reserves backing USDC. So, following interest rates could pressure earnings. Stablecoins are also becoming extremely competitive, and there's no guarantee USDC becomes the dominant currency for AI agents. So, here's what needs to happen for Circle to take off. USDC circulation needs to keep expanding. Circle needs to turn payments and Arc into meaningful business of their own. And stablecoins need to continue moving into mainstream finance. I don't need Ian King's $15 trillion thesis to come true. At this valuation, I need Circle to capture a reasonable piece of a market that already appears to be growing quickly. And with the stock this far off its highs, I'm comfortable giving Circle a moderate buy. I'm going to reveal the rest of the stocks in 15 seconds, but before I do, I want to tell you about my free report on the top 10 stocks to buy and hold right now. These are companies I believe have the best mix of strong long-term potential and growth. When you're done watching, click the link in the description, enter your email, and I'll send it straight to your inbox. Second stock takes us away from the money itself and into something every AI agent will need before companies are willing to trust it. Security and verification. Ian King says this company was started by three engineers back in 2008 with what sounded like an almost paranoid idea at the time. They believed every piece of software should be inspected like cargo coming through a port. Checked and cleared before it was ever allowed into a live system. Fast forward to today and that idea looks pretty important. King says roughly 83% of the Fortune 100 now use this company's technology, including all 10 of the largest technology companies and all 10 of the largest financial companies in America. And the biggest clue is Nvidia. When Nvidia needed technology to help secure and manage AI software moving from development into the real world, this was one of the companies it partnered with. Yet, despite that customer base, Ian says the entire business is only worth around 11 billion dollars. Put all those clues together and the stock is JFrog, ticker F R O G. The simplest way to think about it is that JFrog helps companies store, manage, secure, and distribute the software they built. It's core product, Artifactory, acts almost like a central warehouse for software packages and other digital assets. Before software gets pushed into an app, website, cloud system, or AI product, JFrog can help companies keep track of what they're using and make sure it's safe. And AI can make that job much more important. AI coding agents can now produce software much faster, which means companies could suddenly have far more code, packages, and AI assets flowing through their systems. JFrog's pitch is that somebody has to govern and secure all of that. And the numbers are already showing momentum. Second quarter revenue grew 29% while cloud revenue jumped 53% JFrog now has 97 customers spending more than 1 million dollars a year, up 59% from a year ago. And its net dollar retention rate has reached 121% So, this is a real fast-growing business. The question is how much of that future growth investors are already paying for. For King's thesis to work with this stock, here's what has to happen. AI agents have to dramatically increase the amount of software being created, companies have to become increasingly concerned about where that software came from, and whether it can be trusted. And JFrog has to become one of the main platforms controlling that process. The good news is we're already seeing evidence of this happening. Revenue grew 29% last quarter, cloud revenue grew 53%, remaining performance obligations increased 38%, and more large customers are spending seven figures with the company. JFrog is also working with Nvidia, Anthropic, and Cursor as AI development becomes a bigger part of its business. So, I like the company. Where I struggle is the price. At around $95 a share, JFrog is roughly $11.7 billion. Management currently expects $650 million of of revenue this year, meaning investors are paying close to 18 times annual sales for the business. And the stock is already more than doubled in value over the past year. JFrog is producing strong cash flow, but it's still losing money under GAAP accounting. So, that valuation leaves very little room for the growth story to disappoint. At this valuation, revenue needs to continue growing somewhere around the high 20% range. Cloud and security need to keep taking a larger share of the business, and JFrog really does need to establish itself as a critical security layer for AI generated software. And I can absolutely see this happening. I just don't think I'm getting enough margin of safety at the current valuation. So, for me, somewhere around $70 to $80 a share is where the risk-reward starts getting much more interesting. In the low 70s, the valuation would still carry a premium, but I'd be much more comfortable paying for it with this growth profile. And below 70, I'd get really interested. So, at roughly 95, JFrog goes on a watchlist. But, if we get a pullback to 70 to 80, then I'd be much more interested. All right, let's move into the third stock now. The third stock takes us to the final step in the In King's AI agent economy, the checkout. Think about how the internet works today. Websites spend a lot of effort trying to keep bots from buying things. CAPTCHA boxes literally ask you to prove you're not a robot. But, if AI agents are eventually going to book flights, order supplies, or shop on our behalf, that system has to change. And King says one company is building the checkout infrastructure to make that happen. And his clues narrow this one down pretty quickly. When Open AI wanted to bring shopping into ChatGPT, this was one of the companies it partnered with. When Google started building its own AI shopping experience, it worked with the same company. And King says orders coming through AI-driven traffic on this platform has already increased 15-fold. And this is already one of the biggest names in online commerce. Put all those clues together and you get Shopify, ticker SHOP. Most people know Shopify as the company that lets businesses build online stores, but the business has become much bigger than that. Shopify now provides a huge portion of the infrastructure merchants need to actually run a business. Everything from the storefront and inventory to payments, checkout, shipping, and point-of-sale systems. And the scale is enormous. In the most recent quarter, merchants processed about $116 billion of merchandise through Shopify, while Shopify itself generated about $3.6 billion in revenue. What's impressive is that the business is still growing like it's a small company. Revenue increased 34%, gross merchandise volume grew more than 30%, and Shopify produced $654 million in free cash flow, good for an 18% free cash flow margin. And that's what makes the AI angle very interesting. If shopping increasingly moves from humans browsing websites to AI agents actually finding and purchasing products for us, Shopify already controls one of the largest checkout networks on the internet. But like the previous two stocks that we covered, the question isn't whether or not this is a good company. It is. The question is whether or not the price is fairly valued today. For King's thesis to really work, consumers would have to become comfortable letting AI make purchases for them, merchants would need to support the behavior, and Shopify would have to maintain its position as one of the major checkout systems connecting the two sides. But unlike other AI stories, Shopify really doesn't need all this to happen to remain a great business. Actually, I owned Shopify years ago and eventually sold it, and I've continued to think very highly of the company. You're talking about a platform already processing more than a hundred billion dollars of merchandise every quarter while revenue is still growing above 30%. The company is now generating substantial free cash flow. So, the business itself is not what bothers me. It's the price. Shopify is trading around $178 a share giving a market value of roughly 229 billion. That's against about 13.3 billion of trailing revenue, and the stock is already at roughly a hundred times trailing earnings. You can justify a premium for a company this good, but at some point you're paying today for a lot of growth that you're expecting tomorrow. At this valuation, here's what needs to happen for Shopify to continue being a successful stock. Shopify needs to continue compounding revenue at a very high rate, maintain strong free cash flow, keep taking shares in global commerce, and then the AI age opportunity needs to become a more meaningful growth engine on top of the existing business. And I wouldn't be surprised if Shopify accomplished all of that. I just want a little more margin of safety. For me, somewhere around a hundred to a hundred dollars a share is where I'd become much more interested in owning Shopify again. This is just one of those situations where I really love the company, I just don't like the price of the stock. At today's valuation, Shopify goes on my watch list with roughly a hundred to a hundred twenty as my preferred buy range. And before you go, don't forget to grab my free report on the top ten stocks to buy and hold right now. These are companies I believe offer the best combination of long-term growth potential and strong underlying businesses. Just click the link in the description, enter your email, and I'll send the full report straight to your inbox.